Cab rates increase after rule change

Council limited competition among taxi companies; now one of them is increasing prices by 23 to 63 percent

One of two taxi cab companies licensed to operate in Oceanside is raising its rates by as much as 63 percent, just six months after the City Council adopted regulations that limit competition.

24-7 Taxi Cab has notified the city that it will raise rates effective March 29.

Told of the rate increases, Mayor Jim Wood said Tuesday he might take a second look at the cab regulations with an eye toward easing them to allow more cab companies to compete.

“We might open it up, like they said last time,” Wood said. “I’ll think about it.”

City Manager Peter Weiss had recommended the city remove most restrictions on cab operations to allow anyone to operate as long as they got a business license and paid a fee.

Instead, in August the council — by a 4-0 vote — adopted revised regulations that kept owners of smaller cab companies from operating in the city. Councilman Gary Felien was absent from that meeting.

Among other things, the new regulations require cab companies to have a fleet of at least 10 taxis, none of which are more than seven years old. They also must have at least one cab capable of carrying disabled riders.

Under 24-7 Taxi Cab’s new rates, the charge for the first quarter-mile will be $2.95, up from $2.40, a 23 percent increase. Each additional quarter-mile will cost 65 cents, up from 40 cents, an increase of 63 percent.

The charge for a cab to wait will be $30 an hour, up from $20 an hour, an increase of 50 percent.

24-7 Taxi Cab owner Konstantinos Roditis said the higher rates were needed in part to cover the rising cost of gasoline.

The extra money earned through the higher rates will be passed on to drivers, who lease the cabs for $400 a week and must cover the cost of gas themselves, Roditis said.

“The rates are going 100 percent to the drivers to basically cover their costs,” Roditis said. “It’s more of a thing for the drivers than the company.”

He said the new rates will not increase the company’s profits.

24-7 Taxi Cab operates 14 cabs in Oceanside and has not raised rates since it first came to the city in February 2009, Roditis said.

Yellow Cab, the other taxi company licensed in Oceanside, has no plans to raise rates, said company spokesman Mike Casey.

Casey said Yellow Cab charges the same rates in Oceanside as it does in San Diego, “so we’re going to stick with that.”

If gas prices continue to rise, Casey said the company may reconsider.

“We’ll have to take a look at a surcharge or raising rates, but not for now,” Casey said. “We’re just going to ride it out.”

Casey said Yellow Cab charges $2.80 for the first one-tenth of a mile and 30 cents for each additional tenth of a mile. Wait time charges are $24 an hour, Casey said.

Several smaller cab companies last year urged Oceanside to ease regulations and allow more competition, but those companies have pretty much given up, said Jenny Oakson, president of Coastal Cab Company, which serves Camp Pendleton, Carlsbad, Encinitas and Solana Beach.